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Legal Terms - Assets
Assets, in the plural form, refer to tangible or intangible possessions or entitlements that possess a financial worth and can be owned by either a legal entity or an individual. Assets can be material, such as property and buildings, or intangible, such as goodwill.
A company's balance sheet displays its fixed assets, such as land, machinery, and investments, followed by its current or circulating assets, including shares, debtors, and cash.
Assets for a deceased individual refer to any tangible and intangible possessions that are included in the deceased's estate and can be used to settle their debts and obligations.
Assets, for the purpose of capital gains tax, are defined based on the declaration that states: "All forms of property, whether tangible or intangible, movable or immovable, are considered assets."
The phrase "of property shall be assets" is defined in section 21(1) of the Taxation of Chargeable Gains Act 1992. To address the issue of asset identification, refer to the legal case of Burca v Parkinson [2001] STC 1298. In the case of O'Brien v Benson's Hosiery (Holdings) Ltd [1979] UKHL TC 53, the House of Lords determined that an employer's rights under an employment contract with an employee are considered an asset for the purposes of capital gains tax. The irrelevance of the inability to assign rights is a factual matter. Some types of assets are specifically excluded from capital gains tax, particularly an individual's primary dwelling.
Assets, in the plural form, refer to tangible or intangible possessions or entitlements that possess a financial worth and can be owned by either a legal entity or an individual. Assets can be material, such as property and buildings, or intangible, such as goodwill.
A company's balance sheet displays its fixed assets, such as land, machinery, and investments, followed by its current or circulating assets, including shares, debtors, and cash.
Assets for a deceased individual refer to any tangible and intangible possessions that are included in the deceased's estate and can be used to settle their debts and obligations.
Assets, for the purpose of capital gains tax, are defined based on the declaration that states: "All forms of property, whether tangible or intangible, movable or immovable, are considered assets."
The phrase "of property shall be assets" is defined in section 21(1) of the Taxation of Chargeable Gains Act 1992. To address the issue of asset identification, refer to the legal case of Burca v Parkinson [2001] STC 1298. In the case of O'Brien v Benson's Hosiery (Holdings) Ltd [1979] UKHL TC 53, the House of Lords determined that an employer's rights under an employment contract with an employee are considered an asset for the purposes of capital gains tax. The irrelevance of the inability to assign rights is a factual matter. Some types of assets are specifically excluded from capital gains tax, particularly an individual's primary dwelling.
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